Technical analysis for FTSE 100 for 15th February 2024
The UK's main stock indexes rose on Wednesday after softer-than-expected inflation data provided comfort to investors worried about how long the Bank of England will maintain its restrictive monetary policy for.
The blue-chip FTSE 100 index added 0.8%, while the midcap FTSE 250 was 0.4% higher.
Both indexes had suffered sharp losses on Tuesday after a hotter-than-expected reading of U.S. inflation and domestic labour market data forced investors to temper rate cut bets.
British inflation unexpectedly held steady at 4.0% in January, defying forecasts of a rise to 4.2%, and offering some relief to the BoE and Prime Minister Rishi Sunak ahead of a national election expected this year.
Equities in Asia gained Thursday after Wall Street resumed a rally as robust earnings helped overcome worries about persistent inflation. A gauge for the region’s stocks advanced as much as 0.9%, its highest level since early January. Taiwan’s benchmark stock index reached an intraday recordin its first trading day since Feb. 5, boosted by a 9.8% gain by Taiwan Semiconductor Manufacturing Co.
Asian stocks rose on Thursday, with the Nikkei breaching a new 34-year peak, while the dollar took a breather near a three-month high as markets assess when the Federal Reserve is likely to start its easing cycle after a run of strong economic data.
On Wednesday, Wall Street ended sharply higher as ride-hailing platforms Lyft and Uber rallied, while Nvidia displaced Alphabet as the U.S. stock market's third-most valuable company.
Data on Thursday showed Japan's economy slipped into recession as it unexpectedly shrank for a second straight quarter on weak domestic demand, raising uncertainty about the central bank's plans to exit its ultra-easy policy this year.
FTSE 100 technical analysis for today, 15th February 2024
The bulls are fighting back after the S&P500 tested the start of February level again at the 4950 area, and have managed to get it back above 5000. Across the board it looks like we will see an initial rise towards the first resistance levels and then a dip and rise later. UK GDP data has also just been released which shows that the UK was in recession at the end of 2023, as GDP has declined as well. Traders will therefore be thinking that the BoE rate cuts will come sooner. But with stubborn inflation still persisting ahead of the election in November, probably not!
For the FTSE100 that initial resistance is at the 7609 level where we have R1 and the key fib, and I would not be surprised to see the bears have a go around here (7620 is still daily resistance too) and then a drop down to the 7550 level for a test of the pivot.
Above the 7620 level then ultimately we still have the 7665 area and that is also just above R2, so should it get that high then a short here is also worth a go.
Given the rise, the 2h chart is now bullish again and has support at the 7522 level, so if the bears break 7550 that would be the next level to keep an eye on. However with the daily 200ema at 7560 and that pivot also just below there I am not convinced that we will see that much of a bearish session today.
To also lend some resistance the daily EMAs are bearish with the 25ema at 7595, so again another key level in this area to start with today. A dip and rise would fit quite well, as that also looks to be the play on the Dax40 and the S&P500 - 17880 and 5020 resistance levels of note respectively.
Good luck today.
Interested in how to start trading the FTSE 100? Frequently Asked Questions on Spread betting
Recommended Broker for FTSE 100 trading and how to start trading using support and resistance
IC Markets - offers market leading pricing and trading conditions by providing clients with True ECN Connectivity; this allows you to trade on institutional grade liquidity from the world’s leading investment banks, hedge funds and dark pool liquidity execution venues. Highly recommended!
Membership, Trading Tips, Support and Resistance Levels with Live Trading
If you would like more detailed analysis for FTSE 100, DAX, Gold and S&P, including the trades that I am looking to take myself, then please join my active members community.
What you get
- Daily Analysis pre market open (sent around 7am each day) for FTSE 100, DAX40, Gold and S&P 500.
- Daily email pre market includes my trading plan for the day including ORDER levels, with stops and targets/limits
- Telegram live trading room and group membership for discussion and realtime trade updates
Keep up to date with new content, free sign up below with just your email address
